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INSURANCEAlahli Takaful Co.Also known asATC, Alahli TakafulPriceSR149.0Pricing / Valuation as on May 27, 2009Mkt capSR1.5bn ($397.9mn)Sh. outstanding10.0mnKey statistics52 week range H/L (SR) 149.0/24.5Avg daily turnover (mn) SR US$3m 52.40 13.9912m 28.82 7.69Raw Beta 6m 2yr0.13 0.72Reuters8130.SEBloombergATC ABPrice perform (%) 1M 3M 12MAbsolute (%) 83 137 55Market (%) 6 32 (39)Sector (%) (2) 48 (26)Website: www alahlitakaful.comValuation multiples2006 2007 2008P/E (x) NA NM NMP/B (x) NA 15.4 5.2P/Sales (x) NA NA NADiv yield (%) NA NA NAAlAhli Takaful Company (ATC), established in 2006, is a joint venture betweenNational Commercial Bank, FWU AG, VHV, International Financial Corporation and asmall share owned by local investors. Headquartered in Jeddah, the companyprovides a range of insurance products and services based on Islamic principles.Company financials2007* 2008YoY(%)CAGR(%)(05-07)Net Insurance Premium SRmn - - - -Total Revenues SRmn - - - -Net Income SRmn (2) (10) - -Assets SRmn 95 95 (0.5) -Equity SRmn 94 83 (11.8) -Investments SRmn 94 72 (23.4) -Technical Reserves SRmn - 2 - -Combined Ratio % - 140.5 - -Net Mgn % - NM - -ROE % (2.0) (11.4) - -ROA % (2.0) (10.6) - -Div Payout % - - -EPS SR (0.2) (1.0) - -BVPS SR 9.4 8.3 (11.8) -Source: Company, NCBC Research; * Figures for FY 2007 are from July- December 2007Segment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.09MSCI Saudi (domestic – small cap) 0.38Free float (%)Free float 26.45Relative share price perf.11,0002009,0001507,0001005,000503,000-M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASIATC (RHS)Top 5 shareholders (%)National Commercial Bank 30.0FWU Group 13.1International Finance Corporation 13.1VHV Vermogensanlage 7.5Source: NCBC ResearchSource: NCBC Research• Business brief: ATC’s insurance products include special programs for savings,retirement, and education. The Company’s “AlAhli Takaful and Savings Program”intends to match each individual’s lifestyle and fulfill saving requirements for variouspurposes such as retirement, children’s education, marriage, etc. The schemeprovides maturity as well as death benefits.• Financials: Despite recording gross premium written of SR6.4mn, ATC’s netpremium earned was only SR42 thousand during 2008. The Company’s total assetsaggregated to SR94.8mn, while shareholder’s equity totaled SR83.1mn at the end of2008. Technical reserves of the company at the end of 2008 stood at SR2.6mn.• Recent developments: ATC reported its 1Q-09 results on April 21, 2009. Thecompany’s net loss declined to SR0.6mn in 1Q-09 compared to a net loss ofSR1.4mn in 1Q-08. In February 2008, ATC’s Board of Directors (BOD) appointed Mr.Omar Hashem Khalifti as the Chairman, thereby succeeding Mr. Mohammed OmarKassem Al-Esayi. On August 18, 2007, ATC listed at SR109.7 against the issue priceof SR10 on the Saudi Stock Exchange. The company's IPO was oversubscribed 11.1times.JUNE 2009ALAHLI TAKAFUL191